3 Essential Steps to Maximize the Medicare Annual Election Period (AEP)

The Medicare Annual Election Period (AEP)—which runs every year from October 15 through December 7—is your primary opportunity to make positive changes to your Medicare coverage. Any changes you make during this window will take effect on January 1 of the following year.

Because insurance providers update their costs, networks, and benefits annually, ignoring the AEP could mean missing out on savings or losing access to your preferred doctors. To ensure your coverage continues to align with your lifestyle, follow these three essential steps to determine if you should make changes during the AEP.

1. Determine Your Current Health and Lifestyle Needs

Your insurance needs are directly tied to your current health status, which can change significantly over the course of a year. You don't want to overpay for coverage you don't use, but you also cannot afford to go without necessary benefits if new medical needs arise.

Prior to the AEP, take a personal inventory of your health status. Ask yourself:

• Have I been diagnosed with any new health conditions?
• Have my doctors prescribed new medications, or changed the dosages of my current ones?
• Are there upcoming procedures or surgeries I need to plan for next year?
• Have my lifestyle needs changed, such as needing dental, vision, or hearing coverage, or wanting a plan that includes a fitness program?

If your health needs have shifted over the past year, you should strongly consider taking advantage of the AEP to find a plan that better accommodates those changes.

2. Review Your Current Medicare Coverage

In September, you should receive an Annual Notice of Change (ANOC) letter from your current Medicare Advantage or Part D plan provider. This document outlines any changes in costs, benefits, and network rules that will take effect in January.

Once you have assessed your personal health needs, compare them against your ANOC to ensure your current plan still serves you well.

• If your coverage is lacking: You may need to transition to a new Medicare Advantage plan or add a standalone Part D prescription drug plan that covers your specific medications at a better tier.
• If you have too much coverage: You might be paying high premiums for benefits you no longer use. For example, if you no longer take a costly prescription, you may be able to step down to a plan with a lower premium.

3. Compare Plans and Carriers in Your Area

Once you understand your health needs and how your current coverage is changing, you can make an informed decision about whether a change is necessary. If you decide to explore other options, the final step is to compare the plans and carriers available in your specific ZIP code.

While Original Medicare (Parts A and B) rates and benefits are set by the government, Medicare Advantage (Part C) and Medicare Part D plans are offered by private insurance companies. Because of this, costs, deductibles, out-of-pocket maximums, and provider networks can vary dramatically between different carriers. Be sure to check all of your options, verify that your preferred doctors and pharmacies are in-network, and confirm that your medications are on the new plan's formulary.

Ready to Make Changes to Your Coverage?

Navigating the various tiers, premiums, and network rules can be overwhelming, but you don't have to do it alone. By following these steps, you will be on the right track to finding the Medicare coverage that fits both your health needs and your budget.

Call Trusted Senior Specialists today to speak with a licensed insurance agent who can help you compare plans and secure the coverage you need for the upcoming year.